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11 Dec 2014
EUR/GBP at day’s high after ECB TLTRO disappoints
FXStreet (Mumbai) - The single currency extended gains to trade at day’s high against the British Pound after the results of the European Central Bank (ECB’S) TLTRO failed to provide any positive surprises.
The EUR/GBP currently trades 0.35% higher at 0.7948 levels, compared to the previous session’s close of 0.7921. According to the released data banks took up 129.4 billion euros in loans, more than they did in September but well below the maximum allowable EUR 318 billion. Moreover, the single currency is likely to extend gains as markets believe, the size of bank’s take-up under the second TLTRO is not sufficient to expand the balance sheet by intended EUR 1 trillion.
Meanwhile, the prospects of recovery in the British Pound are low after the Bank of England governor said the relatively low interest rates will persist for some time.
EUR/GBP Technical Levels
The pair has an immediate support located at 0.7952, above which gains could be extended to 0.7977. Meanwhile, support is seen at 0.7933 and 0.7917 levels.
The EUR/GBP currently trades 0.35% higher at 0.7948 levels, compared to the previous session’s close of 0.7921. According to the released data banks took up 129.4 billion euros in loans, more than they did in September but well below the maximum allowable EUR 318 billion. Moreover, the single currency is likely to extend gains as markets believe, the size of bank’s take-up under the second TLTRO is not sufficient to expand the balance sheet by intended EUR 1 trillion.
Meanwhile, the prospects of recovery in the British Pound are low after the Bank of England governor said the relatively low interest rates will persist for some time.
EUR/GBP Technical Levels
The pair has an immediate support located at 0.7952, above which gains could be extended to 0.7977. Meanwhile, support is seen at 0.7933 and 0.7917 levels.